- North American Construction Group (NOA, Financial) launches a $225 million private placement of senior unsecured notes.
- The notes, offering a 7.75% annual interest rate, mature on May 1, 2030.
- Proceeds will be used to repay existing debt and for general corporate purposes.
North American Construction Group Ltd. (NOA) announced the pricing of a $225 million private placement offering for senior unsecured notes. These notes will bear an annual interest rate of 7.75%, with interest payments set to occur semi-annually each November 1 and May 1, starting November 1, 2025. Maturity for the notes is slated for May 1, 2030.
The offering is led by a consortium of financial institutions, including National Bank Financial, ATB Securities, Scotia Capital, and TD Securities. Additional participants are BMO Nesbitt Burns, CIBC World Markets, Canaccord Genuity, Raymond James, and Ventum Financial. The company intends to utilize the proceeds for repaying existing indebtedness under its Credit Agreement and for general corporate purposes.
This offering is conducted privately in Canada under certain prospectus exemptions, and in the United States to qualified institutional buyers under Rule 144A of the U.S. Securities Act. Closing of the offering is anticipated around May 1, 2025, subject to standard closing conditions.
North American Construction Group is a leading provider of heavy construction and mining services in North America, with a market capitalization currently estimated at $450 million, making this offering a significant financial maneuver, representing about 50% of its market capitalization. This strategic refinancing aims to strengthen NOA's financial flexibility over the coming years.
